KUALA LUMPUR, May 17: Malaysian crude palm futures ended marginally higher on Thursday as the market expected healthy export growth to continue this month, dealers said.
The benchmark August contract finished up 10 ringgit at 2,333 ringgit ($686) a ton, after hitting an intra-day high of 2,338 ringgit.
The market has moved up in a tight-range as some players have started to take positions ahead of the export data on Monday, said one dealer with a leading plantation house.
Interest is there because of expectations that the market will go higher.
Traders said the benchmark contract will test the 2,345 ringgit resistance level due to tight supplies at home and firm export demand from top importers China and India.
The palm oil market has gained close to 17 per cent this year after surging 40 per cent in 2006 on the back of demand from the biodiesel and food sectors.
Other traded months rose between 3 and 12 ringgit, except for September which was down 4 ringgit. Overall volume stood at 11,750 lots of 25 tons each.
The Malaysian Palm Oil Board said April closing stocks fell 11.65 per cent to 1,181,320 tons, the lowest in almost three years.
It said palm oil output in April rose 4.11 per cent, less than expected, and exports showed steady growth of 5.9 per cent.
Exports of Malaysian palm oil products between May 1 and 15 fell 4.5 per cent to 637,090 tons from 666,793 tons shipped between April 1-15, according to cargo surveyor Intertek Testing Services.—Reuters
